The original topic seems to be dead, but for everyone's food for thought:
Reasons We Don't Do Santa
1. Santa is often used as a way of  controlling kids and even if you don't use Santa that way yourself  others WILL do it to your children.  It's a harmful carrot to set up  your children to have dangled in front of them.  Not only is it punitive  / reward based but it's not taking responsibility on behalf of the  parent.  "I won't be stopping your presents, Santa will."  As a friend  pointed out: logical consequence "you put the ball through the window  after I told you not to throw it at the window, now there is not enough  money to get you the present you would like" is far better in terms of  teaching that child something useful than "if you don't stop being  naughty Santa won't bring you anything".
2. It does a weird  thing, it promotes Santa as safe when in actual fact anyone dressed up  as Santa could be anything but safe.  Of course Mickey Mouse does that  in a similar way but we are talking now about Santa.  The message given  is: here, this man is okay, he is trustworthy, if he looks like this he  is a lovable old guy who wants nothing more than to give you your weight  in desirable presents, sit on his knee, confide in him, don't cry,  smile, it's Santa.  In reality this is a man who has no more reason to  be trusted than anyone you might run into on the street.  "A  Santa-trained child would be more likely to become a victim [to  predators], having learnt the principle of ‘behaving’ in order to get  rewards from a stranger."
3. It teaches children that presents  are more important than presence, it says to a world of children with  increasingly absentee parents due to divorce, death, depression,  workaholism or other addictions, "it's okay for someone to buy you  presents as the only evidence that they care for you".  Santa is  somebody whom they rarely or never see, but whose entire purpose is to  give them things.  Giving gifts is one valid way of showing your love to  someone, but it's not the only valid way, and most adults would not  feel loved by their loved ones if all they did to express their feelings  was give presents.  The ones who DID feel loved purely by the  receptions of gifts and no other thing are at a disadvantage and have  likely been Santa-conditioned as part of their formative experience.  No  matter what your position on Santa heavy emphasis on consumerism is not  what we want for our children.
4. Teaching belief in Santa is  lying to children.  Oh come on, you say, it’s just a little white lie. I  say that children are people and deserve to be told the truth.  I would  not tell them that the bogeyman will come and gobble them up if they  are not ‘good’, so why would I tell them that Santa will bring them  presents if they are ‘good’?  Personally this is the biggest factor for  me as I was devastated by the Santa lie my parents told me and it  undermines my ability to trust them to this day, cause the message it  gives me about them is "I will tell you the truth if / when I like, if /  when it's convenient, if / when I'm caught in my lie."  This coupled  for me personally with my mother's saying "why would I lie to you, you'd  only find out" destroyed a huge part of my relationship with my  otherwise loving parents.
4b. As well as being wrong, lying to  children is a breach of trust.  Once you start, you either have to admit  to your children that you deceived them, or think up more and more  complicated ways to continue.  Many parents see preserving their  childrens’ belief in Santa for as long as possible as an amusing game.   There are various strategies which can be used to prevent kids from  ‘finding out’.  If a kid, for example, has thought of the objection that  many houses do not have chimneys, and asks how Santa would get in to  these houses, the clever explanation can be given that these days, he  has a spare key to each house so he no longer needs a chimney to gain  entry.  This could be a harmless game, in which the kid does not  actually believe the response, some verbal sparring if you like.  On the  other hand, if the kid believes the parent, this will eventually  undermine their trust, not to mention the immediate effects of  discouraging their powers of reason and possibly making them feel  insecure because people could be sneaking into the house at night.
4c.  It is important to have a clear line between fact and fiction.  Maybe  not everything will fall neatly on either side of that divide but when  my kids watch Thomas the Tank Engine they know trains don't really talk.   It's fun to watch, but they aren't being lied to.  If I was to "do  Santa" then not only would I be lying to them, but also muddying the  waters for later times when I'm actually telling them the truth but it  requires some faith to believe it.  "I love you", "I'm so happy for you  where you are in your life now", "I think this person will make a bad  friend / boyfriend / girlfriend / boss", and mostly anything to do with  faith in God.
5. One criticism I hear often is that children need  make believe, and believing in things that do not exist is an essential  part of healthy childhood.  I certainly agree that children need to  have a rich imaginative life, but this has nothing to do with whether or  not their families ‘do Santa’.  The Santa lie is highly unlikely to  nurture childrens’ fantasies, rather it's more likely to impede them by  making them believe something prepackaged and very limited. Guy, red  suit, fat, snow, reindeer, sleigh, elves, presents, one night.  Get it?  Got it? Good.  It's ludicrous to suggest that if you don't "do Santa"  their imagination will be hampered,  kids will nevertheless readily  fabricate their own fantasy worlds according their unique personalities.   This can easily be seen that millions of children growing up in  non-Santa cultures have the same imaginative faculty as Santa-trained  children.
5b. A related point many Santa proponents make is that  Santa fosters the children’s ‘sense of wonder’.  I would suggest that  any child who needs Santa to bring out her natural sense of wonder must  have a very impoverished environment indeed.  Are there not enough  amazing and miraculous things in the real of world of nature, technology  and human experience?  My sons marvel at trucks that drive past on the  road, trains at level crossings, autumn, dinosaurs, space, underwater  animals and flowers, let alone the gospel, without having to worry about  how an overweight Coca Cola marketing device might manage to get down  our chimney.
6. But what about the ritual of it all?  Many  children love to hang up Christmas stockings and leave out various  treats for Santa and his reindeer.  Again, I agree wholeheartedly that  ritual can be an important aspect of our lives, and that applies to  children too.  But why prioritise a ritual that is at best meaningless  (depending on how you feel about the Saint Nicholas story and the "back  analogies" of a possible "God's gift to the world; Jesus") and at worst  controlling and encouraging of materialism?  There are plenty of ways  families can introduce rituals that focus on family togetherness, caring  for others, or the Christian meaning of Christmas, according to their  beliefs and priorities.
7. Santa is also exclusive in nature.   Children who do not get Christmas presents for whatever reason, or who  only get small gifts, may believe that they are somehow ‘bad’ because  Santa has not approved of them.  Some parents spend money they cannot  afford because they do not want their children to receive less from  Santa than other children.  In the US, it is common for Jewish children  to believe that Santa exists, but only visits Christian children! How  would this make them feel about their religion and culture?  What would  it teach the Christian children?
8. Will children feel left out  if they do not believe in Santa?  Well maybe, but I doubt it.  By ‘not  doing Santa’, we do not forbid our children to receive a present, draw a  picture of Santa, send a pretend letter to him or even see Santa in the  shopping centre. We simply do not tell them that he is a literally  real, supernatural phenomenon.  Our children can get what they want to  out of it, without being deceived and possibly suffering later on when  they find out that their parents have been tricking them for years.  And  in any case, children need to learn that it is OK to be different, and  that everybody has different opinions and beliefs, that just because  someone believes something doesn't make it so.
9. There are more  ways "doing Santa" can work out harmfully than beneficially.  It's too  easy when you start treading down that path of making moral  indiscretions and explaining them away as lighthearted to get messed up  in controlling, consumerism, lying, hurtful things that will hurt your  own soul and hurt your children's souls.  Yes, it's not just about the  kids, it's about me, -I- do not want to expose myself to the rubbish  involved in "doing Santa"
10. Santa : Satan... COINCIDENCE? I THINK NOT! :wink: